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The Data Center Divide

Allegany County

For Allegany County, see Maryland’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Neutral Data Center Policies

Maryland requires large data centers to undergo review, public reporting, and project commitments; projects not deemed aligned may lose coordinated review and discretionary state support. Separate state coordination efforts encourage partnerships but add no data-center-specific building or operating requirements; the review order does not change local zoning.

current law · Statewide
Establishes a prospective framework for reviewing large data-center projects in Maryland, generally covering facilities with at least 25 MW of projected or actual peak electric demand, to assess ratepayer and grid protections, economic and community benefits, environmental impacts, and transparency.Maryland Executive Order 01.01.2026.16 (2026)

What this means

The measure adds review, public reporting, and project commitments for large data centers, and projects not rated aligned can lose coordinated review and discretionary state support (projects not aligned). That creates meaningful paperwork and possible delays, though aligned projects can get coordinated review and the order does not itself change local zoning rules (concurrent review).

People behind it

  • Issued the executive order.

  • Administers and staffs the Task Force and administers the public Dashboard.

  • Coordinates project review, administers the Framework and review process, maintains the Dashboard, and oversees the Coordinated Review Pathway.

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  • Develops energy-plan guidance and templates, helps establish annual reporting, and develops the annual report to the Governor.

  • Issues economic-benefit guidance, incorporates the order’s requirements into incentive procedures, and reports incentive applications and certifications.

  • Issues economic-benefit guidance and coordinates workforce and training connections for Maryland workers.

  • Issues environmental and permitting guidance, reviews data-center permit applications, evaluates regulatory changes, and helps establish annual reporting.

  • Informs the Task Force’s environmental review and works with other agencies to identify ways to expedite permitting for clean generation and storage.

  • Participates in the Task Force, which administers the order’s Framework and review process.

  • Develops the local-government guide through the Task Force.

  • Must cooperate with the Task Force and consider project determinations and commitments in exercising discretion over State engagement.

Restrictions & requirementsHide restrictions & requirements10

  • The order covers data centers with projected or actual peak electric demand of at least 25 MW, including expansions that add at least 25 MW; specified higher-education, health-care, government, and Defense-related facilities are excluded. 25 megawatts or more

  • Projects seeking State engagement are subject to a Framework review. A project that has not sought a determination is ineligible for the Coordinated Review Pathway and specified State engagement; projects rated Not Aligned or Non-Performing face similar limits, including no facilitation, letters of support, or State advocacy. no Executive Department agency shall provide the Coordinated Review Pathway

  • For a Not Aligned or Non-Performing project, or one without a determination, agencies must defer substantive review until the developer documents required local land-use approvals, consistency with the host jurisdiction’s comprehensive plan, and any required water or wastewater authorizations. agencies shall defer substantive review

  • Discretionary State incentives, grants, loans, and financing generally require an Aligned or Conditionally Aligned determination; the developer’s commitments must become enforceable agreement terms with milestones, reporting, clawbacks, successor assumption, and reviews at least every five years. require a Determination of “Aligned” or “Conditionally Aligned”

  • Framework review considers whether the developer can meet the project’s full incremental energy needs without shifting costs to other ratepayers, bear the full cost of required infrastructure and services, and accept protections against stranded costs. It also considers emergency curtailment and limits on critical-load treatment, except for qualifying public-health, safety, or national-security functions. Marylanders must not bear increased energy costs or reliability risk

  • Local land use and community factors are part of the Framework review: a project must be consistent with the host jurisdiction’s comprehensive plan and zoning and obtain, or have a credible path to, required local approvals. A project denied a required local approval cannot receive an Aligned or Conditionally Aligned determination while the denial stands. shall not receive a Determination

  • The Framework considers early and continuing community engagement and whether the developer has negotiated, or is negotiating in good faith, a community benefits agreement. Commitments in a Statement of Commitments must be specific and measurable and bind successors for the life of the project. commitments run with the life of the project

  • Environmental review considers water availability, cooling alternatives, water-use disclosure, air impacts from backup generators, stormwater and discharges, greenhouse-gas compliance, and decommissioning plans backed by financial assurance. For relevant permits, the Department of the Environment is directed, to the extent permitted by law, to require demonstrations and analyses concerning water supply, cooling, and environmental effects. require demonstration that adequate water is available

  • A developer seeking an Aligned or Conditionally Aligned determination must disclose specified ownership, anchor-tenant, energy-demand, water-use, and duplicate-request information and attest to its accuracy. Statements of Commitments require annual reporting, and the order calls for standardized reports on energy, water, employment, environmental measures, and progress against commitments. shall disclose to the Task Force

  • Executive Department agencies may not enter into, renew, or extend NDAs with data-center developers, operators, or site-selection agents about proposed or existing projects; preexisting agreements must be honored but not renewed or extended. No Executive Department agency shall enter into, renew, or extend an NDA

Benefits & exceptionsHide benefits & exceptions7

  • Projects rated “Aligned” or “Conditionally Aligned” can use a Coordinated Review Pathway, with State agency reviews conducted concurrently with local permit approvals and agency timelines and approval status reported publicly. Coordinated Review Pathway

  • Qualifying projects may seek the sales and use tax exemption for qualified data center personal property and other incentives; discretionary State incentives, grants, loans, and financing require an “Aligned” or “Conditionally Aligned” determination, and commitments become enforceable terms. tax exemption and incentive procedures incentive conditions

  • State agencies may provide project support such as State land, infrastructure, and site-selection assistance, and must consider a project’s determination and performance when exercising discretion. This is not a guarantee of assistance and is subject to applicable law. State land, infrastructure, and site-selection assistance

  • The State is to identify ways to expedite permitting for clean generation and storage serving data centers on brownfield or previously developed sites, including through the Voluntary Cleanup Program. expedite permitting

  • A working group is to identify and resolve issues that impede efficient interconnection for projects that meet the Framework. efficient interconnection

  • Energy-plan guidance allows developers to propose ways to meet a project’s incremental energy needs, including new clean generation, demand response, and on-site generation; the plan is evaluated by its ratepayer outcome, and the listed approaches are illustrative. energy-plan options

  • The order protects certain projects from being treated as new applications under its prospective framework: administratively complete State applications submitted by the effective date remain governed by the rules then in effect, and previously issued permits and certifications are unaffected. Renewals and modifications that do not increase peak demand, water use, or permitted emissions are also not treated as new applications under that provision. prospective application and existing approvals

Sources

current law · Statewide
Establishes, effective immediately, a Digital Infrastructure Group within Maryland’s Department of Information Technology to coordinate deployment of digital infrastructure among state, county, and local partners.Maryland Executive Order 01.01.2025.06 (2025)

What this means

The order creates a group to coordinate digital infrastructure planning and encourage partnerships, which could indirectly help data center projects. But it does not provide data center-specific incentives or impose new requirements on building or operating data centers (coordinate the efficient deployment).

People behind it

  • Governor who issued the executive order.

  • Department in which the Digital Infrastructure Group is established and which is assigned coordination, planning, and implementation responsibilities.

Sources

failed · Statewide
Requires large data centers (20 MW or more) to publicly disclose project details and covered local governments to adopt data-center plans and zoning rules before state incentives or tax exemptions are available.Maryland HB 1411 (2026)

What this means

Large data centers projected to use at least 20 megawatts would face new reporting and local planning and zoning requirements, which could add costs and delays or limit where they can be built. State assistance and tax benefits would also depend on meeting the requirements, but the measure does not ban data centers outright.

People behind it

  • Sponsor and proposer of House Bill 1411.

  • Receives disclosure reports and publishes them on its website.

  • Receives disclosure reports from large-scale data center owners or operators.

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  • Planning, economic development, permitting, and environmental authorities that receive disclosure reports.

  • Receive disclosure reports when representing the area where a large-scale data center will be located.

  • Must develop and adopt large-scale data center plans, submit them to the Maryland Department of Planning, and adopt implementing zoning regulations.

  • Receives and publishes local large-scale data center plans and may provide planning guidance and model ordinances.

  • Must ensure statutory compliance before providing financial assistance or incentives to large-scale data centers.

  • Administers applications and certifications for the sales and use tax exemption, including additional requirements for large-scale data centers.

Restrictions & requirementsHide restrictions & requirements7

  • Large-scale data centers—facilities projected to have an aggregate monthly demand of at least 20 megawatts, including qualifying multitenant facilities—must submit a disclosure report to specified State agencies, local authorities, and elected officials at least 60 days before applying for a required construction or operating permit, approval, or license, or for State financial assistance or incentives, whichever comes first.

  • The disclosure report must provide extensive information about the facility, including projected electricity use and sources, emissions, backup generators, on-site generation, cooling and water use, noise levels, power infrastructure needs, construction milestones, jobs, and intended financial incentives. The report is not confidential, substantial changes require an amended report, and the Maryland Department of the Environment must publish it on its website within 30 days after receiving it.

  • Each covered local jurisdiction with at least 10,000 residents, other than Baltimore City, must adopt a large-scale data center plan by June 30, 2027, submit it to the Department of Planning within 60 days, and adopt zoning regulations, overlays, or other restrictions needed to implement the plan.

  • The required local zoning regulations must identify locations where large-scale data centers are prohibited, allowed only by special exception, or allowed by right, allowing jurisdictions to restrict or prohibit development in designated areas.

  • A covered local jurisdiction must hold at least two public-input meetings while developing its large-scale data center plan and require at least two public-input meetings before approving a large-scale data center development plan or permit.

  • State agencies may not provide grants, loans, or other financial assistance or incentives to a large-scale data center unless the owner or operator has complied with the disclosure-report requirements and the host local jurisdiction has adopted the required plan and implementing zoning regulations.

  • An applicant for Maryland's sales and use tax exemption for qualified data center personal property must demonstrate compliance with the disclosure-report requirements and show that the host local jurisdiction has adopted the required large-scale data center plan and implementing zoning regulations.

Benefits & exceptionsHide benefits & exceptions6

  • Large-scale data centers may qualify for Maryland sales-and-use tax exemptions for qualified data center personal property if the owner or operator submits the required disclosure report and the local jurisdiction adopts the required data center plan and zoning regulations. Existing eligibility requirements, including qualifying investment and job creation, still apply.

  • State agencies may provide compliant large-scale data centers with grants, loans, tax incentives, or other financial assistance if the owner or operator submits the required disclosure report and the host jurisdiction adopts the required data center plan and zoning regulations.

  • Each local jurisdiction with at least 10,000 residents must adopt a large-scale data center plan by June 30, 2027, creating a local framework for data center siting and expansion.

  • Covered local jurisdictions must adopt zoning regulations identifying areas where large-scale data centers are prohibited, allowed by special exception, or allowed by right, providing defined approval pathways where development is permitted.

  • Local data center plans must recommend desirable locations for large-scale data center development and consider supporting infrastructure, including transmission lines, substations, and other power-support infrastructure.

  • The Maryland Department of Planning may provide guidance, model ordinances, and other resources to help local jurisdictions plan for data center development and adopt implementing regulations.

Sources

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